What is proforma invoice?
Proforma invoice is also called advance invoice. Sometimes, at the request of the importer, the exporter will prepare an informal reference invoice for the name, specification, quantity, unit price, estimated value, etc. of the exported goods, which can be used by the importer to apply for the import license and approve the foreign exchange from the financial or foreign trade authorities of his own country.
As it is not a formal document, it can not be used as the accounting basis for both parties in the transaction, It can not be used for collection and negotiation, and has no final binding force on both parties of the transaction. When the transaction is formally concluded and the contract is performed, another formal invoice shall be issued in accordance with the relevant provisions.